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Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (2896)	8/1/2025 10:01:51 AM
From: Elroy	1 Recommendation Recommended By Lance Bredvold Respond to of 2962

I think the pullback in the SIMO share price since hitting $85 yesterday is more macro driven than SIMO driven. SIMO story remains as good as it has ever been. They are now starting an extended sales growth spurt, with the H2 2025 forecasts pretty much baked in (much more likely to beat and raise in both Q3 and Q4 than disappoint), and then EVERY product category is expected to grow in 2026. SIMO's only issue (sort of) now is that they are spending like crazy on R&D, and the way SIMO's business works is today's spending pays off in sales about two years later. The impending H2 2025 growth spurt is the result of semiconductors taped out in H1 2024. This year they are spending like crazy on enterprise controllers which (if successful) will be driving sales around Xmas 2026/calendar 2027. We don't know that these will be successful, but if they are they've got the potential to move SIMO out of the "consumer electronics" junky category into the "diversified semiconductor maker" which dominates it's segment. If SIMO gets a decent foothold in data center and AI infrastructure storage (via it's controllers), the PE multiple will expand, and the stickiness of the sales will increase.